Today, the EV market is undoubtedly one of the most rapidly growing markets in the world. Tesla’s stocks surged more than 700% last year, making the Tesla CEO, Elon Musk, the wealthiest man. Witnessing this massive surge in Tesla stocks, many investors are now investing heavily in the EV market. So which one of them will grow out to be the next Tesla?
Should you buy or wait?
While learning about this surge in the market might tempt you to buy the stocks quickly, but according to experts, you shouldn’t. The word is that EV stocks are not yet stable. Hence the future can’t be predicted as of yet. Therefore, now is not a good time to buy based on speculation.
Take the case of Nio (NIO), Workhorse Group (WKHS), and Xpeng (XPEV), all of them suffered losses of double digits. Meanwhile, even the EV leader Tesla stock declined by 3.8%. Take a look at what an automotive consultancy head advises –
“Nobody should expect anything but more volatility for the next year. That’s how uncertain the future is concerning EV startups.” – said Michael Dunne, CEO of ZoZo Go.
But this doesn’t deny the fact that Tesla, with the current value of $573.9 billion, remains the most valuable automakers in the world. Its stocks still dominate at the first spot in the automotive sector.
Promising Stocks to look out for –
Now, let’s take a look at some promising stocks which can give fierce competition to Tesla. While once upon a time, the automotive sector was all about the American and European market, China has emerged as a prominent player in the EV sector.
Chinese EV Stocks to look out for –
|Company||Symbol||Origin||Electric vehicle exposure|
Most of the EV startups are new and lack resources, but not the Chinese ones. The above-listed EV companies went public between the last three years and since then have witnessed a massive rise in their stocks. In fact, Nio (NIO) and Xpeng (XPEV) are hailed to be the Chinese competitor of Tesla.
One of them is Nio stock, which took off in March 2020. Nio’s combination of innovation and brand awareness helps it stand out from rivals like Xpeng and Li Auto. Among the three, Nio is the most promising stock as it witnessed a sale surge of 113% with the launch of its new SUV in 2020.
US Stocks to look out for –
|Company||Symbol||Country||Electric vehicle exposure|
|Lordstown||RIDE||U.S.||Pickup trucks for fleets|
What’s different about the US EV market is that apart from Tesla, most EV companies are newcomers. A lot of them are yet to release even their first model in the market. Hence it will be speculative to comment on their future.
But even so, the inexperience has played a little part as these EV stocks are backed heavily by Wall Steet. Some of the promising US electric vehicle stocks include Nikola (NKLA), Lucid (LCID), and Fisker (FSR). In fact, Lucid was among the latest brands to go public with a record blank-check deal. Its first car, the Lucid Air, is expected to hit the market later this year.
While the surge in the stocks of the EV market might be confusing, but one thing is crystal clear. Henceforth, it won’t be that easy for Tesla to retain its top stop. It will face heavy competition from legacy automakers like Volkswagen and new startups like Lucid, Nikola or its Chinese counterparts like Nio and Xpeng.